Housing Wire has reported that “the Consumer Financial Protection Bureau will not delay implementing the complex TILA-RESPA Integrated Disclosure (TRID) requirements that go into effect Aug. 1, but there will be a good-faith enforcement grace period that both the mortgage industry and a bipartisan coalition in Congress have asked for. The TRID rule, which was brought forth by the CFPB, has a sweeping impact on the real estate market through the implementation and compliance costs it requires.”
In a letter to the Consumer Financial Protection Bureau, Congress felt that the Aug. 1 implementation date could adversely affect consumers as the new process has not yet been tested.
The letter stated, “Even with significant advance notice, understanding how to implement and comply with this regulation will only become clear when the industry gains experience using these new forms and processes in real-life situations.”
Congress understood the importance of not disrupting some of the busiest months of the home-selling season and the impacts that it might have on home buyers and sellers.
National Association of Realtors President Chris Polychron said, “While NAR appreciates the CFPB’s understanding of the difficulties involved in making a change of this magnitude, we hope that continued dialog with U.S. Senate and House leaders will result in a solution that allows the lending industry and CFPB to address any implementation issues and minimize costly closing delays for home buyers and sellers.”
Had the CFPB dialogued with Realtors, lenders, escrow and title companies and other stake holders in real estate transactions during the creation of the TRID regulation, a much more thought-out and easier-to-implement disclosure would have emerged.
— Reyne Stapelmann is a broker associate with Berkshire Hathaway Home Services, California Properties and the 2015 president of the Santa Barbara Association of Realtors. Contact her at reynestapelmann@cox.net or 805.705.4353. The opinions expressed are her own.